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7 comments to Silver Update 6/28/12 Silver Grab Bag

Question for SGT: Is it POSSIBLE, that both the gold, and silver price, from where they stand today, could fall precipitously, back to pre-2000 levels, leaving everyone who invested in either (say, within the past 2 years) totally busted – particularly if there is an economic collapse, and reset, whereby the gov’t could re-value gold and silver at a MUCH lower price, thus stealing even more of the labor/wealth of the people?

I think anything it is ‘possible’ in terms of the bogus PAPER price of this precious physical asset. Bix Weir has long stated the paper price of Ag could go to zero… but you won’t be able to get an ounce of physical. However, as has been said by many experts I have spoken to, if we see a $10 paper price for silver (or $5 per your query), there would be NO physical metal available. That’s not conjecture either, it’s exactly what Andy Schectman told me in our last interview. The 2008 crisis and resulting paper price of silver almost put him out of business because he could NOT get physical for any where near the paper price. In fact, for a short time he could get physical silver at any price. But yes, I think JPM can do whatever it wants because it IS part of the government as a primary dealer of the FED,they are beyond the law. BUT they are not above catastrophe and with $70 Trillion in derivatives ready to meltdown, they should eventually be crushed under their own weight. Given that none of us know what the price of silver will be in the short term (brotherjohnf and others were predicting $100 silver by the end of the year last year)… I have always advocated dollar cost averaging on a regular basis. I just bought another 20 ounces tonight. Paper is paper, physical silver is precious. Best of luck to us all!

To answer the above question, yes and no. A fall in the precious metals is indicative of deflation, which we all know is why Bernanke was given the job with his helicopter Ben speech and his view that deflation is the ultimate enemy. They control the price, but remember that central banks hold large amounts of gold. The central banks are owned by Rothschilds and other wealthy families and be assured that they know what real money is. Now with an economic collapse both silver and gold could fall dramatically but in that situation do not expect many people to be selling their physical metal and such price movement would most likely be followed by a sharp move upwards. They are able to set the price to an extent but they cannot control the supply and demand and you would run into supply issues with the cost to produce falling below the market price. If we have a collapse and reset, what would be the point of revaluing precious metals unless they become part of the monetary unit again. And if that is the case the you run into supply issues again with metals now somewhat needed for use by all individuals. You also have to assume that the people would have faith in whatever currency is implemented, which is the primary reason PMs are used because people understand it has value and takes time and energy to produce. I could go on but suffice to say that gold is held by many wealthy policy setting individuals and silver is in short supply with more uses appearing more and more frequently. They like to think they are all powerful but if you distort the market enough the imbalances become unsustainable and laws of supply force a correction, weather you like it or not. We could see some down prices in the short term or in the beginning of a crash.

I second that motion sir!! I’ve made it routine to purchase $1.00 in face value pre-65 coinage every pay day. Sometimes I purchase more, but that’s my minimum and the bidding prices on ebay have been getting much higher than spot on average lately and that’s not even factoring in the shipping cost for sellers who don’t offer free shipping.

Just a side note to those who keep waiting for “the bottom”… those of us who dollar cost average and/or purchase a set amount on a regular basis regardless of price keep taking more & more out of the system making less & less available. Sure, paper silver may go down to the teens or lower, but I can gaurantee that you won’t get physical for that price… if you can get it at all.

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